The five forces that determine the long-term profitability of a company in a market include the:
A)quality of the company's product.
B)talent of the company's staff.
C)size of the company.
D)bargaining power of suppliers.

Question

Quizplus · Accepted Answer

The five forces are bargaining power of suppliers, bargaining power of buyers, threat of new entrants, threat of substitutes, and intensity of competitive rivalry. The size of the company, quality of product, and talent of staff are not part of the five forces. The bargaining power of suppliers can affect a company's profitability as suppliers may be able to charge higher prices or offer lower quality materials.

The Five Forces That Determine the Long-Term Profitability of a Company